Laserfiche WebLink
CITY OF LINO LAKES, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 2019 <br /> <br /> <br /> <br /> <br />Note 17 RISK MANAGEMENT <br /> <br />The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets, errors <br />and omissions, injuries to employees and natural disasters. <br /> <br />Workers compensation coverage is provided through a pooled self-insurance program through the League of <br />Minnesota Cities Insurance Trust (LMCIT). The City pays an annual premium to LMCIT. The City is subject <br />to supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through Workers <br />Compensation Reinsurance Association (WCRA) as required by law. For workers compensation, the City is not <br />subject to a deductible. The City’s workers compensation coverage is retrospectively rated. With this type of <br />coverage, final premiums are determined after loss experience is known. The amount of premium adjustment, if <br />any, is considered immaterial and not recorded until received or paid. <br /> <br />Property and casualty insurance is provided through a pooled self-insurance program through the LMCIT. The <br />City pays an annual premium to the LMCIT. The City is subject to supplemental assessments if deemed <br />necessary by the LMCIT. The LMCIT reinsures through commercial companies for claims in excess of various <br />amounts. The City retains risk for the deductible portion of the insurance policies and for any exclusions from <br />the insurance policies. These amounts are considered immaterial to the financial statements. <br /> <br />The City continues to carry commercial insurance for all other risks of loss, including disability and employee <br />health insurance. <br /> <br />There were no significant reductions in insurance from the previous year or settlements in excess of insurance <br />coverage for any of the past three fiscal years. <br /> <br /> <br />Note 18 INSURANCE RECOVERY <br /> <br />During 2019, the City received insurance proceeds in the amount of $711,854 relating to storm damage. The <br />insurance proceeds were expended during the year to replace the roof of the Civic Complex. <br /> <br /> <br />Note 19 PRESENTATION OF DEPOSITS PAYABLE <br /> <br />For the year ended December 31, 2019, the City implemented GASB Statement No. 84, Fiduciary Activities. <br />Based on the guidance provided by GASB 84, the City’s developer deposits no longer meet the definition of a <br />fiduciary activity. Therefore, the amounts and activity previously reported in a fiduciary fund are now reported <br />in the General Fund. This reclassification had no effect on beginning net position or fund balance. <br /> <br /> <br />82